A special-order decision analysis cannot be used to make long-term pricing decisions.Prices must cover all costs if the company is to be profitable in the long run,and all costs are not considered in a special-order decision analysis.

Question

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Special-order decision analysis only considers the costs relevant to the specific order and does not take into account all the fixed costs and overhead expenses that must be covered to ensure long-term profitability.

A Special-Order Decision Analysis Cannot Be Used to Make Long-Term